Disruption Isn’t the Only Path to Innovation

HBR IdeaCast

Harvard Business Review

Leadership, Entrepreneurship, Communication, Marketing, Business, Business/management, Management, Business/marketing, Business/entrepreneurship, Innovation, Hbr, Strategy, Economics, Finance, Teams, Harvard

4.4 • 1.9K Ratings

🗓️ 2 May 2023

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

Disruptive innovation has proven such a powerful idea that many people now equate innovation with market disruption. But INSEAD strategy professor Renée Mauborgne says there's a powerful way to create new markets without destroying jobs, companies, and communities: "nondisruptive creation." She explains how some entrepreneurs and companies have been able to grow billion-dollar businesses that are new markets rather than displacements of existing ones. Two examples are the microfinance industry and the firm Square. And she explains how leaders can seek out these opportunities to foster profitable growth with less social harm. With fellow INSEAD professor W. Chan Kim, Mauborgne wrote the new book Beyond Disruption: Innovate and Achieve Growth without Displacing Industries, Companies, or Jobs.

Transcript

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0:00.0	Are you trying to bring your leadership skills to the next level?
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0:09.0	HBR editors like me hand select the best leadership case studies and conversations
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0:18.0	Listen for free to HBR Unleadership, wherever you get your podcasts.
0:24.0	New episodes every Wednesday.
0:30.0	Welcome to the HBR Idea Cast from Harvard Business Review.
0:41.0	I'm Kurt Nickish.
0:43.0	We interviewed Jim McElvie back in episode 730.
0:53.0	He told his story of co-founding the mobile payments company Square.
0:57.0	He had been annoyed to lose a sale when his independent glass blowing studio
1:02.0	couldn't take a credit card.
1:04.0	Basically, back then, if you sold less than $10,000 a year,
1:08.0	accepting credit cards just wasn't economical.
1:11.0	Square made it possible for individuals in small merchants to take credit cards
1:16.0	with a mobile phone or tablet.
1:18.0	And Visa and MasterCard were happy about it because it was bringing them brand new business they didn't have before.
1:25.0	As McElvie said in that interview, the most interesting part of a market is where it ends.
1:31.0	Because that's where anyone can expand the zone and create wholly new value, a new market.
1:38.0	Today's guest says that Square, now a multi-billion dollar business,
1:43.0	is a great example of non-disruptive creation.
1:47.0	And that more companies can grow in a way that moves beyond a destructive win-lose competitive mindset
	...

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